Building a model around existing spaces in SF is difficult because demand and rent are so high. Campus Houses was the master tenant for ~30 large houses in Bay Area–I lived in one for a month–and the community was amazing, but unfortunately the overhead was too high to make the model work and they closed down, giving up all the houses.

I built a simple model for the space at 120 10th St., link at the bottom.

I suggest in the model that each bedroom would cost a renter 3k per month. Here is a building nearby that charges similar for their studios, it’s for students and interns only http://www.panoramiclivingsf.com

Unfortunately, even at this price (2500 sounds more reasonable to me), the math does not result in a very profitable business. At best it floats around break even.

**So I’m asking myself, is it worth it at breakeven?

Pros:
– The space might be a nice center piece / proof of concept for building a coliving company
– It provides 12 flexible beds in SF
Cons:
– It doesn’t generate cash
– Airbnbing the space or acting as a small 300/night hotel would likely make more money, or a group of friends could just rent it together